China Authorities Arrest 21 in $54 Million USDT Money-Laundering Case
The police department of China has recently reported on a money laundering scheme using USDT as the base currency. The scam in question has led to 21 arrests in various locations in the northern Shanxi province.
Police officials have also confiscated around $54 million worth of USDT from the criminal syndicate. The news was reported and aired on CCTV, a national broadcasting television network this week.
It is important to note that USDT is a stablecoin backed by the US dollar and issued by Tether Limited Inc. This company is a subsidiary of a Hong Kong-based enterprise named iFinex Incorporation.
The investigators on the matter have alleged that the crime venture is spread across four provinces of the country making illegal profits by purchasing USDT at lower costs from OTC markets. The syndicate is thought to be operational since 2021.
The economic situation of the world is changing drastically and the government of China has made some important changes in its infrastructure to tackle the challenges. As per the police department of the nation, the crypto-based crime syndicate has managed to generate profits by selling their USDT tokens at higher prices using social media sites and other questionable platforms.
According to the police officials the criminals in question have managed to generate around $4.8 million USDT during the period of last three years.
The police officials have also managed to take around 40 smartphones from the location. In addition, officials have reported a cash stash of 200,000 Yuans as per the report aired on CCTV.
On the other hand, the 21 people of interest apprehended in the case have confessed their crimes. The accused are suspected of several charges including laundering money by turning Yuan into USDT with the help of cybercriminals.
USDT has Become a Popular Instrument for Financial Crimes
The recent report issued by CCTV has declared CCTV as the preferred instrument for committing financial crimes. The report maintained that the stablecoin is used in money laundering on account of its transaction anonymity and ease of access.
It is important to note that the government of mainland China has imposed a detailed embargo on everything crypto in 2021.
Meanwhile, the country also introduced a ban on the issuance of any cryptocurrencies in 2017. However, cryptocurrency enthusiasts in the nation continued to access the cryptocurrency market using DeFi channels such as decentralized exchanges and other underground forums. While the majority of Bitcoin mining firms left the region in 2021, China continued to remain an important hash rate contributor using proxy services.
The stance towards cryptocurrencies in China cooled for a while recently but considering its liquidity and debt issues, there is an increasing chance of changing tides in the country towards Bitcoin and other altcoins.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at [email protected] if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. CreditInsightHubs is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
